Chandelier Stop

A Chandelier Stop is a dynamic stop-loss level that moves up as your stock gains value, protecting your profits while letting winners run. It's calculated by taking the highest price over the last N days, then subtracting a multiple of Average True Range (a measure of how much a stock typically bounces around). You'll see traders use this when they want an exit that adapts to the stock's actual volatility rather than a fixed percentage. For example, if TechCorp rallies hard, your Chandelier Stop climbs with it—but if the stock suddenly drops below that moving level, it's time to sell. It's popular because it balances staying in winning trades with protecting yourself from sharp reversals.